Survey of ECON 2nd Edition by Robert L. Sexton – Test Bank
Chapter 3—Supply and Demand
MULTIPLE CHOICE
1. Which of the following is true of a competitive market?
|
a. |
The rules of supply and demand do not apply to it. |
|
b. |
Buyers and sellers have little market power. |
|
c. |
Each buyer’s or seller’s effect on market price is substantial. |
|
d. |
Few sellers offer similar products. |
ANS:BPTS:1DIF:E
TOP: 3.1 Competitive Markets | Competitive Markets
2. Which of the following is true of a competitive market?
|
a. |
The rules of supply and demand do not apply to it. |
|
b. |
Buyers and sellers have little market power. |
|
c. |
Each buyer’s or seller’s effect on market price is substantial. |
|
d. |
Few sellers offer similar products. |
ANS:BPTS:1DIF:E
TOP: 3.1 Competitive Markets | Competitive Markets
3. Which of the following is not true of a competitive market?
|
a. |
The rules of supply and demand apply to it. |
|
b. |
Buyers and sellers have little market power. |
|
c. |
Each buyer’s or seller’s effect on market price is substantial. |
|
d. |
Few sellers offer similar products. |
ANS:CPTS:1DIF:E
TOP: 3.1 Competitive Markets | Competitive Markets
4. Which of the following is not true of a competitive market?
|
a. |
The rules of supply and demand do not apply to it. |
|
b. |
Buyers and sellers have little market power. |
|
c. |
Each buyer’s or seller’s effect on market price is substantial. |
|
d. |
Many sellers offer a wide variety of different products. |
ANS:DPTS:1DIF:E
TOP: 3.1 Competitive Markets | Competitive Markets
5. The law of demand refers to the:
|
a. |
decrease in price that results as more units of a product are demanded. |
|
b. |
increase in price that results from an increase in demand for a good of limited supply. |
|
c. |
inverse relationship between the price of a good and the quantity demanded. |
|
d. |
increase in the quantity of a good made available when its price increases. |
ANS: C PTS: 1 DIF: E TOP: 3.2 Demand | Demand
6. Which of the following is not held constant along a given demand curve?
|
a. |
income |
|
b. |
price |
|
c. |
tastes |
|
d. |
expectations |
ANS: B PTS: 1 DIF: M TOP: 3.2 Demand | Demand
7.The law of demand illustrates a(n) ____ relationship between price and ____.
|
a. |
direct; quantity demanded |
|
b. |
inverse; quantity demanded |
|
c. |
inverse; demand |
|
d. |
direct; demand |
ANS: B PTS: 1 DIF: E TOP: 3.2 Demand | Demand
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